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About The Patterson Foundation
• The Patterson Foundation believes new realities can emerge when entities collaborate in innovative ways
• By working together and sharing the value of what we learn, entities create a synergy that benefits all involved, including the wider community
TPF looks beyond what is….
to what could be
through strategic focus
Today’s Goals
Big Trends Spiraling Up
Collaboration Models Stiring the Juice!
“Is there a different model for what we do?”
Neal Gittleman, Artistic Director Dayton Philharmonic Orchestra
“We thought we needed to look at
something bigger to turn things
around and have a real possibility for
an upside, rather than just trying to
keep the downside at bay,” he recalls.
State of the Sector Survey* Results 2011 v. 2012
2011 2012 Expect more demand for services 85% 88% Have cash to cover only up to 3 months 60% 57% of operations Expect 2012 to be financially harder 41% 41% than 2011 * Over 4000 responses
Trends for the Next Ten Years (aka The New Normal)
# of Nonprofits Tax Base Community Need Giving (Funders/Donors)
As competition for donors, board members and staff talent has increased, nonprofits have become more competitive and less collaborative. It’s about mission- impact and optimization.
The New Normal
• How do we leverage our current resources to provide more and better services?
• How do we do more with the same or less?
A conversation about Spiraling Up
Understanding What the Terms
Mean
The Collaboration Prize
The Lodestar Foundation
Database housed at the Foundation Center
Collaboration Prize Numbers
2009: 644 submittals 2011: 809 submittals
About 650 -- “best of the best”
are in the database
Collaboration
Partnerships
Parent-Subsidy Jt. Programming
M & A
Back Office Consolidation
Joint Venture
Shared Services
ASO & MSO
Strategic Alliance Affiliations
Integration
Greater Autonomy Greater Integration
Pro
gra
m
Ad
min
istr
ati
on
Administrative Consolidation
Joint Programming
Single focus or program
Multi-focus or program
Integrated system
Contracting for services
Exchanging services
Sharing services
Information sharing
Program coordination
Joint planning
Collaboration
Management Services
Organization
Parent/Subsidiary
Corporation
Corporate Merger/
Acquisition
Joint Venture
Corporation
The Partnership Matrix
Collaboration
Change in Corporate Structure
Collaboration Strategic Alliance Corporate Integration
Strategic Restructuring
Contract or MOU
No permanent organizational commitment
Decision-making power remains w/
individual organizations
Involves a commitment for the future
Decision-making power is shared or transferred
Is agreement-driven
Involves changes to corporate control
and/or structure, including creation and/or
dissolution of one or more organizations
TPF Space
What is Strategic Restructuring?
Collaborative strategies that use partnerships
to enhance mission attainment
Sharing resources and decision making
for greater impact
Test!
How much do you know about nonprofit
partnerships?
True or False?
Partnership strategies should only be
considered during tough economic times.
Top 5 goals sought through collaboration…..
1. Expand reach, range of services and programs
2. Improve quality of services and programs 3. Address unmet or escalating community
needs 4. Maximize financial resources 5. Serve more and/or different audiences
Top 5 circumstances prompting collaboration….. 1. Advance a shared goal 2. Respond to community needs 3. Initiated or mandated by funder(s) 4. Competition for funding or clients 5. Respond to a funding opportunity
The answer? Strategic partnerships require careful assessment and thoughtful decision-making. “Wise organizations choose strategic restructuring to further their missions.”
True or False?
It’s all about mergers.
0%
10%
20%
30%
40%
50%
60%
70%
80%
JointProgramming
AdministrativeConsolidation
Merger Confederation
Strategic Collaborations are as custom as the First Lady’s boots!
True or False?
Even if a merger makes sense, we’ll lose our
identity and the value of our brand
Structures can be tailored to meet specific needs: • Single entity with “A program of” • Parent subsidiary relationship • Umbrella corporate structure using
d/b/a
Oakland East Bay Symphony, Oakland Symphony Chorus, and
Oakland Youth Orchestra
Merger
La Piana Consulting © 2009
THE INSTITUTE FOR ENTREPRENEURIAL
EXCELLENCE’S Center for Women in
Business
Foundation Center & Issue Lab in the knowledge curating space merged in 2012 “We are now part of a whole ecosystem of knowledge” Gabriela Fritz, IssueLab Co-Founder
True or False?
It is just like M&A in the corporate world
Process is the key
Begin by exploring
• Private sector mergers are about stakeholder equity.
• Nonprofit mergers are
about mission.
True or False?
These strategies don’t work in my field
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%
Human Services
Education
Mental Health
Health
Other
Community Development
Technology
Public Affairs
Volunterism
Philanthropy
Religion
Housing
Arts and Culture
Environment
Civil Rights
Animal Protection and Welfare
Now, buckle up!
Domestic Violence
• Blue Shield of California Foundation funding groundbreaking work Trigger? Leadership challenges
• Starting simple--4 DV groups coming
together around common elements Consignment shops
When Eden looked for a partner to acquire their Florida operations, Easter Seals was a natural fit. Debra Lynn, VP Programs, Easter Seals Florida Eden Autism and Easter Seals Florida
• Funder Collaborative
• $2+M investment
Indianapolis Animal Welfare Alliance
Capacity building • Additional funds for cat spay/neuter • Merger of two organizations • Two year support for a new program
to place 120 senior/special needs shelter dogs in homes. Funding will focus on medical issues
• Funding for medical, food, shelter supplies, outreach, education for a feral sanctuary
Coming together for common good
Animal Protective Foundation, New York
Austin ASPCA Partnership
The Oregon Hay Bank
Habitat for Humanity Charlotte Region Catalyst Project
Management Services Organization/Joint Venture
La Piana Consulting © 2011
Working collaboratively for about a year
Joyous Noise! Drywall & concrete pricing Charlotte, Desoto, Manatee & Sarasota (2) affiliates
The Power of Five
Collaborative Fundraising
Three Stories
Orlando Ballet, Orlando Philharmonic Orchestra, and
The Orlando Opera Company
Case Study: Grande Masque New Year’s Eve Gala
La Piana Consulting © 2010
Consolidated or Shared Services
PEO: Four human services organizations about to issue an RFP
Chattanooga Museums
Administrative Consolidation
La Piana Consulting © 2011
The Children and Family Services Center
MSO for Shared Space and Administrative Services
La Piana Consulting © 2011
YMCA of St. Petersburg and YMCA of the Suncoast
Administrative Consolidation
La Piana Consulting © 2011
ARCH: Alliance for Rural Community Health
Joint Venture Corporation
Reasons to Consider…
Economics Opportunities Leadership challenges A tired board To better serve the community Reasons specific to each nonprofit
Key Success Factors Trust
Joint Decision-Making Start with Simple Collaborations
Shared Culture Board Engagement
Good Facilitation and Process Sustainable Structure
Leadership
Why Partnerships Fail Partnerships do not fail because organizational leaders can’t integrate financial systems or IT…. Partnerships fail because people tend to hold on to their individual cultures and fail to create a new culture…
Understanding Trust
Reliability
Openness
Integrity
Competence Benevolence
Don’t be overly
concerned about
losing decision-
making autonomy.
Successful
nonprofit
collaborations are
driven by mission
attainment not
financial crisis.
What did you learn?
Do you feel inspired?
Are you ready to Spiral Up?
Thank you! (Resource Guide follows this slide)
Pam Truitt
Patterson Fdn CRI
Collaborative/Strategic Restructuring Resources
The Collaboration Prize Database http://foundationcenter.org/gainknowledge/collaboration/ La Piana Consulting www.lapiana.org The Patterson Foundation Blog www.thepattersonfoundation.org TPF Habitat Blogs http://www.thepattersonfoundation.org/blog/habitat-for-humanity-affiliates-explore-ways-to-collaborate/ http://www.thepattersonfoundation.org/blog/charlotte-area-habitat-for-humanity-affiliates-collaborate/
Nonprofit Finance Fund State of the Sector http://survey.nonprofitfinancefund.org/#respondents,demand,actions,gov,engagement,finhealth Domestic Violence Blue Shield of California Foundation http://blueshieldcafoundation.org/programs/program-area/blue-shield-against-violence http://lapiana.org/research-publications/publications/articles/partnerships-in-the-domestic-violence-field http://strongfieldproject.org/resources/power-partnerships-executive-summary-2012 Domestic Violence and Child Advocacy Center, Cleveland http://dvcac.org/ Animal Welfare Indianapolis https://indyhumane.org/index.php/news/special_announcement Animal Protective Foundation www.animalprotective.org Austin ASPCA Partnership www.aspca.org/adoption/aspca-partnership/austin/ The Oregon Hay Bank www.oregonhaybank.org/ Performing Arts Organizations http://www.thepattersonfoundation.org/blog/the-m-word-an-open-discussion-with-donors/ Dayton Performing Arts Alliance http://www.thepattersonfoundation.org/blog/this-merger-makes-sense-part-1/ http://www.thepattersonfoundation.org/blog/this-merger-makes-sense-part-ii/ http://www.thepattersonfoundation.org/blog/an-update-on-the-dayton-performing-arts-alliance-merger/
Levels of Administrative Functions
• Transactional
• Baseline transactions • Payroll, accounting, benefits administrator, IT operations
• Managerial • Mission-based management, planning and sustainability
• Budgeting, financial analysis, employee trainings, employee recruitment, IT/systems planning
• Strategic • Future planning and strategy creation to lead, innovate and change
• Financial marketing, strategic planning
Examples of Administrative Collaboration and Consolidation
Option Human Resources Information Technology Finance Other
Collaboration Sharing policies, procedures, best practices
Cross-training (e.g. spending time in each other’s office[s])
Shared recruiting, training
Sharing policies, procedures, best practices
Coordinated IT analysis and assessment
Joint training of staff on new software
Sharing policies, procedures, best practices
Joint finance training for staff and board
Sharing governance models
Coordinated long-range planning
Consolidation Mentoring
Standardized HR practices, training
Development of a common recruiting pool
Shared HR professional
Shared database and server
Shared IT professional and other key staff
One organization provides IT services for another
Shared accounting systems
Shared CFO, key staff
One organization provides accounting services for another
Advocacy training for boards
Joint marketing/ branding
Bulk purchasing, translation services
Creating an MSO
Shared employment
Co-employment
Single benefits program
Benefits administration
Intranet
Common Help Desk
Shared accounting software
Centralized servers
Centralized finance staff and systems – report generation, cash management, billing
Centralized facilities management
Coordinated grants management and reporting
